Featured Product

    APRA Revises Measures to Strengthen Superannuation Member Outcomes

    August 28, 2019

    APRA published the prudential standard SPS 515, thus finalizing changes to the requirements for how superannuation licensees assess the outcomes they are delivering to their members. SPS 515 will come into force from January 01, 2020. To assist registrable superannuation entity (RSE) licensees in implementing the new requirements, APRA released a finalized prudential practice guide SPG 515 on Strategic and Business Planning, along with a draft prudential guide SPG 516 on Business Performance Review for a six-week consultation period that ends on October 10, 2019. APRA expects to release the final version of SPG 516 in December.

    SPS 515 sets out the requirements for an RSE licensee to set strategic objectives for its business operations and to maintain a written business plan that articulates the approach of an RSE licensee to achieving these strategic objectives. SPS 515 contains prudential requirements to ensure that fund expenditure is in the best interests of members and that there is a comprehensive decision-making and monitoring process for expenditure that is determined by its size or nature to be significant. SPS 515 also requires an RSE licensee to undertake a business performance review to annually assess its performance in achieving its strategic objectives. The guidance in SPG 515 relates to the business planning and expenditure management requirements in SPS 515. SPG  is also to be read in conjunction with SPG 516 on Business Performance Review, which provides guidance on the APRA expectations with respect to the business performance review and the annual outcomes assessment required under the Superannuation Industry (Supervision) Act 1993 (SIS Act). The Business Performance Review requires an RSE licensee to analyze its performance in achieving its strategic objectives, including the following:

    • Results of its monitoring of performance against the business plan
    • Outcomes achieved for different cohorts of members against objective internal and external benchmarks
    • Results and underlying analysis from the annual outcomes assessment

    As part of the consultation on SPG 516, APRA has substantially revised the guidance in draft SPG 516 to reflect the legislated outcomes assessment, the Business Process Review, and the movement of some guidance material into SPG 515. APRA is, therefore, releasing SPG 516 as a draft for consultation and welcomes feedback on it, particularly the guidance on the legislated outcomes assessment. The release of draft SPG 516 is intended to provide industry with more certainty on the APRA expectations for the Business Performance Review and components of the legislated outcomes assessment that are not currently envisaged to be dependent on the SIS Regulations. This draft guidance will allow RSE licensees to prepare for implementation of the prudential requirements from January 01, 2020.

     

    Related Links

    Comment Due Date: October 10, 2019 (SPG 516)

    Effective Date: January 01, 2020 (SPS 515)

    Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, SPS 515, Business Performance Review, SPG 516, SPG 515, Outcomes Assessment, APRA

    Featured Experts
    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958